PERTH (miningweekly.com) – Copper developer CuDeco has secured a new A$30-million investment from a UK-based institutional investor to fund its flagship Rocklands copper project, in Queensland.

Following the placement to the institutional investors, Rocklands would withdraw a previously announced renounceable rights issue, which had been aimed at raising some A$83.3-million.

The initial renounceable rights issue would have been conducted on the basis of one new ordinary share for every two shares held and priced at 60c a share.

However, the rights issue was not welcomed by shareholders, with a group of shareholders stating their intention to make an application to the Takeovers Panel to raise concerns around the potential effect the issue of new shares might have on the control of the company.

Instead, CuDeco said this week that the company would now undertake a new nonrenounceable revised rights issue, which would be conducted on the basis of one new fully paid ordinary share for every four shares held, at an issue price of 80c each, to raise some A$63-million before costs.

CuDeco would also seek to remove the current trading halt and restart share trading on the ASX.

“CuDeco is pleased to welcome a new cornerstone investor, which will help diversify our shareholder registry internationally. With the support of this new institutional investor and our current shareholders, the company is looking forward to completing the electrical installation and commissioning of the Rocklands project and delivering our first commercial shipment from the mine in early 2016,” said CuDeco interim independent chairperson David Taylor.

He pointed out that, to increase the company’s detailed disclosure and investor confidence, a feasibility study for the Rocklands project was also advancing towards completion, with the study to be released by early December.

“The board appreciates the support of our shareholders in delivering Rocklands amid challenging market conditions. The Rocklands project's future copper sales will benefit from the depreciating Australian dollar and, with its expected high-grade ore during the initial years of production, will deliver substantial operating cash flows for shareholder benefit,” Taylor said.

The Rocklands project was expected to include a three-million-tonne-a-year processing plant and would produce 480 000 t/y of copper/gold, pyrite/cobalt and magnetite concentrate.